Consumer Watchdog: How to get a refund if Western Union scammed you

For years, consumers all over the country, including some here in Indiana, have been targeted by sleazebags who have used Western Union to take their hard-earned money and run.

If you happen to be among the hundreds of thousands of unlucky ducks ripped off by these creeps, I have good news: you might have the chance to recoup some of your money – but only if you act fast.

If you got scammed using Western Union between Jan. 1, 2004, and Jan. 19, 2017, you have only a few days left to stake your claim for a refund.

Christine Young(Photo: Provided)

Nature of the Western Union scam

Last year the federal government reached a settlement with Western Union, requiring the company to pay $586 million to reimburse consumers who were victims of fraud during that period, such as the Indiana couple who was falsely promised a sweepstakes jackpot, but only after they wired a $299 “processing fee” via Western Union.

Or the Indiana residents who reported getting calls supposedly from the local sheriff’s department, falsely accusing them of missing jury duty and demanding they pay a fine using – you guessed it —Western Union.

Nationwide, victims have been promised everything from prizes, loans, job opportunities and discounted products to keeping family members out of jail. Once they’d been suckered, it was too late. Western Union typically enforced its no-refund policy, even if the sender was a victim of fraud or the company’s own agent was complicit in the scam.

Western Union isn't without fault

It isn’t as though Colorado-based Western Union didn’t have a clue. Thieves love to use money transfers because they can pick up cash within minutes almost anywhere in the world, often without an ID or using a fake ID, and the payouts can’t be traced.

In fact, between Jan. 1, 2004, and Aug. 29, 2015, Western Union logged at least 550,928 complaints – 80 percent from American consumers – about fraud-induced money transfers totaling more than $632 million.

Still, the FTC says the company declined to implement effective anti-fraud policies and procedures and allowed problem agents to remain on the job because it was profitable to do so.

How to get a refund

As part of the settlement with the feds, Western Union agreed to implement and maintain a comprehensive anti-fraud program and to suspend or terminate the bad apples.

But don’t think the settlement has stopped the swindlers. With the May 31 deadline looming, they’ve discovered new ways to cash in on the old fraud. The FTC says the Western Union refund program has inspired a new round of rip-offs, offering claimants special access, easier ways to file and promises of big money.

One bogus email claiming to be from the FBI promised a half-million-dollar refund just by responding to a Gmail address. So if you believe you are eligible for a refund, submit your claim at FTC.gov/WU. Fill in whatever information you have, upload any documents you have and submit. Finally, here are some pointers from the FTC:

There are no guarantees. Nobody can promise you a refund at all, let alone a specific sum. Once all the claims are in, there will be a process to validate them and divvy up the money among those who qualify.

There are no shortcuts. That validation process will take time, and there are no shortcuts or special access. It might take a year to get your money back, and nobody can help you get it any faster.

Christine Young is the Consumer Watchdog for the Courier & Press. If you have a problem with a product or service, email her at christineonmyside@gmail.com